Investment legend Warren Buffett has added to his stake in Tesco.
The US billionaire yesterday upped his holding in Tesco by 34 million shares. The purchase takes his stake in the retail giant from 3.2% to 3.6% and has been interpreted by some as a vote of confidence in the supermarket’s strategy in the US, where its Fresh & Easy subsidiary has yet to make a profit.
The news came on the day Tesco officially debuted its £500m price-cutting campaign, the Big Price Drop.
However, analysts at Bernstein today warned that Tesco was set to announce a fall in UK like-for-like sales of up to 2% for the most recent quarter. The retail giant will announce its results for the six months to 27 August on 5 October, when sales across the group are likely to rise by 8%.
Tesco wages £500m Price Drop campaign (23 September 2011)
Second Opinion: Tesco finds the market in the gap (3 September 2011)
Vote of confidence for Clarke as Buffett tucks in to Tesco (25 June 2010)